MANILA, Philippines – Let the country’s stellar economic performance in the 1st quarter and the possibly better growth in the 2nd speak for themselves.
This was according to President Benigno Aquino III when he was asked if an upgrade to investment grade rating by global credit rating agency Moody’s Investor Service is forthcoming.
“It is difficult to speak on their behalf. I don’t want to even pre-empt them. Let’s just wait for them,” Aquino told reporters in Malacañang on Monday morning, June 3.
“I think the 2nd quarter figures (GDP growth) should be the same and we are hoping they will be even better,” he added. On May 30, the Philippines announced that it grew a stunning 7.8% in the first quarter, faster than powerhouse China’s 7.7%.
On Monday morning, Moody’s noted the Philippines’ 1st quarter GDP and record budget surplus are “credit positive,” a hint that an upgrade is likely.
Moody’s is the last of the global credit rating agencies that still rate the Philippines a notch below investment grade.
Fitch was the first in March to upgrade the credit rating of the Philippines to the same status as the A-lister countries. Standard & Poors’ followed in May, as did Japan Credit Rating Agency.
Moody’s senior analyst Christian de Guzman stressed the improvement in tax collection, resulting in a P36.8-billion budget surplus in April.
Revenue generation is always a weak point in the Philippines credit profile, he said. – Rappler.com